How to Incorporate in Ontario: A Quick Checklist for Small Business Owners
Starting your business journey in Ontario? Incorporation could be your next most significant step. Incorporation helps protect against liability and has its own set of tax advantages and credibility improvements for your business. But how to register a business in Ontario online without getting caught up in the paper trail? Don’t worry, we got it.
Below is a step-by-step guide on how to incorporate in Ontario, the steps you’ll need to follow, and answers to some of the most frequently asked questions. Let’s dive in!
What is an incorporated business?
Before we jump into the checklist, let’s start with the basics. An incorporated business is a separate legal entity from its owners. This means your personal assets are protected from business liabilities, and the company has its own rights and responsibilities—like the ability to own property, sign contracts, and even be sued.
Incorporation isn’t a necessity for all businesses, but it’s often the right choice for those seeking growth, credibility, or legal protection.
Benefits of Incorporating in Ontario
Why Incorporate Your Business? Following are some of the advantages:
Limited Liability: In cases where your business runs into financial issues, your personal assets are not at risk.
Tax Advantages: Corporations enjoy lower tax rates and can defer income taxes.
Professional Image: An incorporated business is considered credible by many customers and investors.
Business Continuity: The business can survive forever, unaffected by ownership changes.
A Step-by-Step Checklist to Incorporate in Ontario
1. Name Your Business
First, brainstorm a unique name for your business. Your name must:
- Be distinct and not too similar to existing businesses.
- Avoid using prohibited or offensive terminology.
- Include a corporate ending like Incorporated, Corporation, or Limited (or their abbreviations).
Pro Tip: If you are not creative, you can choose a numbered company option, such as 1234567 Ontario Inc.
[More about Ontario Naming Corporation]
2. NUANS Name Search
A NUANS (Newly Upgraded Automated Name Search) report is a report that confirms your desired business name can be used. This step would confirm no other firms in Ontario have an identical or similar name. [You can conduct the NUANS Search here]
3. Selecting a Type of Incorporation
You can choose to include either of the following:
- Ontario Corporation: For businesses operating primarily in Ontario.
- Federal Corporation: For businesses planning to operate across Canada.
If you are not sure what business structure is right for you, you can check this blog article that compares Federal and Provincial incorporation
4. How to Register a Business in Ontario Online
Now that you have a name and incorporation type, it is time to incorporate in Ontario online. You can register a company in Ontario online through Online Business Registry. We have created a very simple and user friendly platform, you can complete the process in just a few minutes and incorporate online in a few hours.
5. File Articles of Incorporation
This document describes the structure and basic information about your corporation, such as:
- Company Name
- Registered office address
- Names and addresses of the directors
- Share Structure
You will be filing this document through your online business registration process, or with the assistance of Online Business Registry.
6. Pay Incorporation Fees
Ontario incorporation online requires a certain fee. The starting cost of incorporating is approximately 399 CAD + Tax for an online submission, and is higher for submitting by mail or if it includes the additional services.
7. Register for a Business Number (BN)
Once incorporated, you’ll receive a 9-digit BN from the Canada Revenue Agency (CRA). This number is crucial for filing taxes, hiring employees, and more.
How to Incorporate in Ontario Online
Incorporating online is faster and more efficient. Here’s how you can do it:
- Visit the Online Business Registry website.
- Fill out the simple online form.
- Upload your NUANS report or order a new one from us.
- Pay the incorporation fees.
Once approved, you’ll receive your incorporation documents by email.
What happens after incorporation?
Establish Corporate Records
You’ll need to maintain corporate records, including shareholder and director details, meeting minutes, and financial statements.
Open a Business Bank Account
Set up a separate business bank account with your incorporation documents, which helps to keep your money organized and not mixed up with your personal accounts.
Obtain Licenses and Permit
Depending on your sector, you will need to obtain other permits that will enable you to operate legally in Ontario
Example: How to Register a Cleaning Services Business in Ontario
Starting a cleaning services business is one great way into a growing market with constantly high demand in Ontario. Whether residential cleaning, commercial cleaning, or specialty cleaning-whatever your focus may be – it is very important that you register the business. Here’s how you do it:
Step 1: Choose Your Business Name
A name of your choice that reflects cleaning services in a unique and professional manner. The name should be unique and memorable, containing words and phrases like “cleaning”, “maid service”, “janitorial” describing your services.
- Meets Ontario’s naming requirements; should not have words that are considered offensive or prohibited.
- You can check if your desired name is available through a NUANS (Newly Upgraded Automated Name Search) report.
Step 2: Choose a Business Structure
Your cleaning business can be structured in one of these forms:
- Sole Proprietorship: Easiest to set up; you and the business are legally the same.
- Partnership: Suitable if you’re starting with a partner.
- Corporation: Provides liability protection, more paper work and costly too.
Most cleaning small businesses start as sole proprietors or partnerships.
Step 3: Online Business Registration
If you aren’t using your legal name – for example: John Doe Cleaning Services – you must register your business name. You can do this:
- Online, through Online Business Registry: Easy and quick.
- In-person or by mail: It takes longer, but it is available for those who prefer traditional methods.
Step 4: Obtain all Licenses and Permits
Cleaning services aren’t typically subject to special permits in Ontario, but you may require:
- GST/HST Registration: If your annual revenue exceeds $30,000.
- Business Insurance: This covers businesses against liabilities, damages, or accidents.
- Workplace Safety and Insurance Board (WSIB) Registration: If you have employees, you need WSIB coverage.
Step 5: Open a Business Bank Account
Separate your personal finances from your business transactions by opening a dedicated business bank account. Most banks require your registration documents and MBL.
Step 6: Accounting and Invoicing
Invest in accounting software to track your income, expenses, and taxes. If you’re just starting, tools like QuickBooks or Wave are affordable and user-friendly.
Step 7: Market Your Cleaning Business
Now that your online business registration is completed, it’s time to find clients! Begin with these marketing tips:
- Website Creation: Include services, price listings, and contact information.
- Social Media: Applications such as Facebook and Instagram will be helpful in engaging with local clients.
- List on Local Directories: Listings on websites like Yelp or Google My Business make it much easier for people to find your services.
- Network Locally: This can be as simple as distributing fliers or business cards in your neighborhood.
FAQs Incorporating in Ontario
How long does it take to incorporate in Ontario?
Online business registration in Ontario takes only 1–2 business days. We can expedite the process and incorporate your business within 2 business hours. Applications sent by mail take about 4–6 weeks.
Federal VS Provincial Incorporation
A federal corporation allows you to operate under your business name across all of Canada, providing nationwide name protection and the flexibility to expand beyond provincial borders. However, it comes with additional compliance requirements, such as annual filings with Corporations Canada and possibly multiple provincial registrations if you operate in specific provinces.
On the other hand, a provincial corporation limits name protection to Ontario but has fewer compliance obligations and lower costs. Provincial incorporation is often the better choice for businesses that plan to operate exclusively within Ontario, while federal incorporation is ideal for companies with broader ambitions.
How to register a company in Ontario Online?
You can visit the Online Business Registry website , fill out the simple forms, complete the payment, and, afterwards receive all the documents by email.
How to incorporate yourself in Ontario?
You can register a corporation in Ontario online through the Online Business Registry portal. At Online Business Registry, our competent and efficient team of experts treats your business with extreme care and professionalism. Be it your questions or the need for guidance, directly consult our experts via phone, live chat, or email.
How to add a shareholder in a corporation?
Adding a shareholder would involve:
- Issuance of new shares or transfer of the available ones.
- Updating your corporate records to reflect the identity of the new shareholder.
- Filing any required changes with the CRA.
How to open a numbered company in Ontario?
When filling out your Articles of Incorporation, simply choose to be assigned a number instead of providing a business name. You’ll receive a name like 1234567 Ontario Inc.
Common Mistakes to Avoid When Incorporating
- Skipping the NUANS search and ending up with a rejected name.
- Failing to update corporate records regularly.
- Not understanding the tax obligations of a corporation.
Conclusion
Incorporating your business in Ontario doesn’t have to be overwhelming. With this step-by-step checklist and the use of tools such as an online business registration, you are able to set up your corporation efficiently and focus on growing your business. Not clear on how to register a business in Ontario online, or perhaps you have more questions regarding maintaining a corporation? Give us a call at 416-628-9349, and let’s have a chat! Happy incorporating!
